Measuring retail success in an omni-channel world
Omni-channel retailing is – or should be – changing the way retailers evaluate their business performance. Same-store sales have been the key metric utilized to measure a retailer’s health for many years but this metric only measures the traffic in the physical store without understanding the influence brick-and-mortar has on e-commerce or vice versa. Attracting and retaining customers wherever they choose to shop is more important than where they shop or where they ultimately buy, as long as it remains with your brand.
Total revenue is far more important than individual channel revenues Since today’s shopping journey is often cross-channel, it is shortsighted not to consider the indirect influence and impact each channel has on the other channel sales. The consumer purchase decision is rarely isolated to one touch point – most customer journeys utilize multiple channels. According to Nielsen reports, 60% of consumers shop online before buying in the store (webrooming) and more than 50% of consumers browse in a store before making a purchase online (showrooming). Another impact on total sales is catalog shopping or catalogrooming – where consumers shopping in a catalog and then purchasing online or in the store.
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